Diane Romza-Kutz,
Carl Rowley,
Susan Werstak, and
Kelly Laffey of Thompson Coburn's
cannabis practice attended the 2016 Cannabis Business Summit
hosted by the National Cannabis Industry Association in Oakland,
Calif. in late June. The conference's keynote speaker was Gavin
Newsom, Lieutenant Governor of California. In addition,
Oakland Mayor Libby Shaaf addressed the audience. More than
3,000 members from all sectors of the cannabis
industry attended the summit.

Thompson Coburn presentations

The summit began its June 22 agenda with Carl Rowley's panel
discussion entitled "Product Liability and Mass Tort
Litigation: Will the cannabis industry be next?" Carl and the
panel discussed the risks of mass tort litigation against the
industry in light of recent product liability lawsuits filed in
Colorado. Carl also discussed strategies to avoid falling victim to
those lawsuits, fielding questions from industry leaders in the
audience. The panelists strongly encouraged cannabis businesses to
engage legal representation now to help formulate
litigation-avoidance strategies.

The afternoon sessions included Diane Romza-Kutz's panel
entitled "FDA Regulatory Compliance." Diane and her panel
discussed a wide array of regulatory issues, including food and
additive labeling and safety, also fielding questions from industry
leaders. Her overall message was that the FDA persists in its
position that cannabis is a drug and, as such, has not been
demonstrated to be safe and effective. This combined with the fact
that it remains as a Schedule I controlled substance poses
challenges for the industry but such are not insurmountable. It is
clear that there is growing pressure on the federal agencies to
recognize cannabis and its legitimate uses and in so doing develop
appropriate federal regulations. Diane explained that it would
be beneficial for the cannabis industry to implement best practices
solutions now by treating their businesses as if they already were
regulated by the FDA and implementing standard operating
procedures that eventually will be required by the FDA, such as
batch testing, labeling practices which otherwise comport with FDA
standards, and implementing good manufacturing practices, as well
as regular supply chain audits.

All eyes on California

Because the conference was in California, topics of key
importance included the Medical Marijuana Regulation and Safety Act
(expected sometime next year) and the Adult Use of Marijuana Act,
which has been placed on the November ballot. Gavin Newsom
addressed both issues, stating that the time has come for cannabis
access that is both regulated and safe. Newsom is the
highest-ranking elected official ever to address a cannabis
industry conference.

Tension between state/federal regulations continues

In speaking with attendees, it was clear that the continued
tension between state and federal regulations remains the number
one concern of the cannabis industry. Some businesses have sought
to avoid this tension by engaging in business
that offer cannabis-related products and services, such
as greenhouse supplies. There was a great deal of discussion about
de-scheduling cannabis or changing how cannabis is scheduled and
how that would impact the industry. Finally, there appeared to be a
growing consensus that the industry itself was looking inward
to professionalize its practices to establish credibility within
the mainstream of the medical business world.

Overall, the programming and discussions that emanated from the
conference continued to push the cannabis industry in the right
direction. Advocating for the industry to better itself and improve
business practices, conference attendees set a strong platform for
future growth and increasing acceptance of this developing
industry.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Some comments from our readers…“The articles are extremely timely and highly applicable”“I often find critical information not available elsewhere”“As in-house counsel, Mondaq’s service is of great value”